Balanced Fund Lead Investment Manager Change
Press Release - April 2, 2018
Veteran fund manager Kevin V. Earley was named lead manager of the Mairs & Power Balanced Fund, effective April 1. Ronald L. Kaliebe, lead manager of the Fund, moves to a co-manager role in preparation for his retirement on June 30, 2019. Robert W. (Bob) Thompson joins Earley and Kaliebe as a co-manager of the Fund.
"Ron's leadership and mentorship at Mairs & Power over the past two decades leave an important legacy. He has worked effectively with both Kevin and Bob and the Balanced Fund will benefit as that close working relationship continues during this planned management transition,” said Mark L. Henneman, Chairman and CEO, Mairs & Power, Inc.
These portfolio management moves are being made to allow for a smooth and orderly transition in the management of the Fund during the fifteen months leading up to Kaliebe’s planned retirement date in 2019. The conservative, long-term investment management approach of the Balanced Fund will remain unchanged.
Kaliebe, who joined Mairs & Power in 2001, has been lead manager of the Mairs & Power Balanced Fund since 2013 after serving as co-manager since 2006.
Earley joined Mairs & Power in 2013 as Vice President, Equity Analyst and Investment Manager. He has served as Fund co-manager since 2015. Mr. Earley began his investment career as an equity analyst with FAF Advisors in 1997, later becoming a portfolio manager on the firm’s mid and large cap value team. Prior to joining Mairs & Power, Mr. Earley co-managed two mutual funds at Nuveen Asset Management.
Thompson joined Mairs & Power in 2016 as Assistant Vice President and Fixed Income Portfolio Manager after 13 years as Vice President, Corporate Bonds at Advantus Capital Management, a division of Securian Financial Group, Inc. in St. Paul. Prior to that Bob worked as Senior Securities Analyst at Lutheran Brotherhood (now Thrivent Financial) in Minneapolis.
As of December 31, 2017, the Mairs & Power Balanced Fund (MAPOX) held $985 million in assets under management.
About Mairs & Power
Established in 1931, Mairs & Power is an independent, employee-owned investment advisory firm committed to pursuing long-term growth. The firm’s mutual funds and individually managed accounts are built on the strength and success of carefully selected, quality stocks and bonds. One of the cornerstones of the firm’s equity approach is its regional strategy focusing on stocks of companies headquartered in the Upper Midwest. Mairs & Power manages mutual funds and individually managed portfolios. As of December 31, 2017 Mairs & Power’s assets under management totaled $9.9 Billion. For more information, please visit our website www.mairsandpower.com.
Morningstar Analyst Reports
Morningstar - April 2018
Mairs & Power Growth, Balanced & Small Cap Fund Analyst Write-ups by Tony Thomas
Below are links to Morningstar Analyst write-ups done on the Mairs & Power Funds by Tony Thomas:
Morningstar Growth Fund Analyst Report
Morningstar Balanced Fund Analyst Report
Morningstar Small Cap Fund Analyst Report
Q1 2018 Balanced Fund Update Recording
Recording - May 2, 2018 Click the link below to listen to Kevin Earley, Balanced Fund lead portfolio manager, Ron Kaliebe, co-portfolio manager, and Bob Thompson, co-portfolio manager, as they provide insight into the Balanced Fund's investment management philosophy, holdings that affected the Fund's return and investment opportunities.
Recording - Q1 2018 Balanced Fund Update Recording
The statements and opinions expressed are those of the speakers and are as of the date of this call. All information is historical and not indicative of future results and subject to change.
Scott Howard is a registered representatives of ALPS Distributors, Inc.
2017 Tax Forms Information
Below are the mailing dates for 2017 tax statements for the Mairs & Power Funds. Tax statements are now available for electronic delivery. If you'd like to sign up for electronic delivery of tax statements and other statements, please call Shareholder Services at 1-800-304-7404.
Funds' 2017 Supplement Distribution and Tax Information
Tax Form Important Dates:
Form 1099-R: available by January 31, 2018
Form 1099-Q: available by January 31, 2018
Form 592-B State of California: available by January 31, 2018
Form 1099-DIV: available by February 15, 2018
Form 1099-B: available by February 15, 2018
Form 1099-INT: availabel by February 15, 2018
Form 1042-S: available by March 15, 2018
Form 5498-ESA: available by April 30, 2018
Form 5498: available by May 31, 2018
If you have any questions or concerns, please refer to the Tax Guide or contact Shareholder Services at 1-800-304-7404.
Q4 2017 Growth Fund Update Recording
Recording - February 7, 2018 Click the link below to listen to Mark Henneman, Growth Fund lead portfolio manager, as he provides insight into the Growth Fund's investment management philosophy, holdings that affected the Fund's return and investment opportunities.
Recording - Q4 2017 Growth Fund Update
Annette Lance and Scott Howard are both registered representatives of ALPS Distributors, Inc.
2018 Capital Gains and Dividends
Mairs & Power Funds 2018 Capital Gain and Dividend Distributions:
|Fund Name||Dividend per Share||Short-Term Capital Gain per Share||Long-Term Capital Gain per Share||Total Capital Gain as % of NAV|
|Small Cap Fund
Record Date: March 27, 2018
Payable/Ex-Dividend/Reinvestment Date: March 28, 2018
Dividend and Capital Gain FAQ
Q3 2017 Small Cap Fund Update Recording
Recording - November 9, 2017 Click the link below to listen to Andy Adams, Small Cap Fund lead portfolio manager, as he provides insight into the Small Cap Fund's investment management philosophy, holdings that affected the Fund's return and investment opportunities.
Recording - Q3 2017 Small Cap Fund Update
Scott Howard and Annette Lance are registered representatives of ALPS Distributors, Inc.
Diversification does not elimate the risk of experiencing investment loss.
Mairs & Power Mutual Funds' Board Transition
Press Release - October 6, 2017
Bert McKasy, current Chair of the Mairs & Power Funds Trust Board of Trustees, will be retiring on December 31 of this year, having reached the Board's mandatory retirement age of 75. The Board of Trustees has appointed Dr. Mary Schmid Daugherty to succeed Mr. McKasy as Board Chair effective January 1, 2018. Dr. Daugherty has been a Trustee of the Funds since 2010 and is the current Audit Committee Chair.
The Board of Trustees also appointed two new Trustees to the Board effective January 1, 2018: Susan Knight and Mark Henneman. Ms. Knight is retired from MTS Systems Corporation where she was Senior Vice President and Chief Financial Officer. She currently serves as Chair of the Surmodics, Inc. Board of Directors. Mark Henneman is President of the Funds Trust and President and Chief Investment Officer of Mairs & Power, Inc. Continuing to serve as Trustees of the Funds are James Alt, the current Nominating and Governance Committee Chair, Dr. Mary Schmid Daugherty, Patrick Thiele, who will succeed Dr. Daugherty as Audit Committee Chair, and Jon Theobald, the current Chairman and CEO of Mairs & Power, Inc.
About Mairs & Power
Mairs & Power is an independent, employee owned investment management firm focused on long-term performance. The firm's strength and success have been built by applying a consistent, conservative investment approach since 1931. The cornerstone of the firm's equity approach is a regional strategy with a heavy representation in stocks of companies headquartered in the Upper Midwest. Mairs & Power manages individual advisory portfolios and three mutual funds: Mairs & Power Growth Fund-MPGFX, Mairs & Power Balanced Fund-MAPOX and Mairs & Power Small Cap Fund-MSCFX. As of June 30, 2017 Mairs & Power's assets under management totaled $9.6 Billion. For further information go to www.mairsandpower.com.
Wealth Management - Think Global Invest Local
Wealth Management Article - September 25, 2017
Think Global, Invest Local - For areas in the Upper Midwest, Mark Henneman's Mairs & Power Growth Fund is attractive for its deep roots, no frills and long horizon by Dan Weil.
Wealth Management's Article
Wealth Management's Article Disclosure
Electronic Delivery of Statements - New Direct Shareholder Servicing Feature
Effective August 1, 2017, eDelivery will be available to shareholders with accounts held directly with the Mairs & Power Funds. eDelivery provides your tax statements, account statements and trade confirmation statements online rather than by regular mail. Starting August 1, 2017, shareholders can elect to receive materials electronically by contacting Shareholder Services at 1-800-304-7404 or by clicking below to sign up for eDelivery. To enable eDelivery online, you need to create an online account first or sign into your existing account. For questions, please contact Shareholder Services at 1-800-304-7404.
To access your existing account or create a new account, please click here.
New Leadership at Mairs & Power
Press Release - July 28, 2017
Mairs & Power is pleased to announce that a new Chairman and CEO, a new President and a new Chief Investment Officer (CIO) will assume those roles effective on January 1, 2018. Jon Theobald who has been Chairman and CEO since 2012 will be retiring at the end of the year. Mark Henneman will become Chairman and CEO replacing Theobald, and Robert Mairs will become President and will continue to serve as Chief Compliance Officer (CCO). The firm's new CIO will be Andrew Adams, replacing Henneman in that role. Though no longer an employee after December 31, Theobald will remain associated with the firm as Chairman Emeritus and he will continue serving as a Trustee of the Mairs & Power mutual funds.
Mark Henneman joined Mairs & Power in 2004 as Vice President, was named co-manager of the flagship Mairs & Power Growth Fund in 2006 and became the Fund's lead manager in 2013. Henneman was named President and CIO in 2015.
Robert Mairs joined Mairs & Power in 2015 as General Counsel and Assistant to the Chairman, and a year later added the title of CCO. Prior to joining the firm in 2015 Mairs practiced law in Minneapolis for 16 years with the Gray Plant Mooty law firm.
Andrew Adams joined Mairs & Power in 2006 as Vice President. He was appointed lead manager of the Mairs & Power Small Cap Fund which was launched in 2011. In 2015 Adams added the responsibility of co-managing the Mairs & Power Growth Fund and in 2016 he was named Executive Vice President.
About Mairs & Power
Mairs & Power is an independent, employee owned investment management firm focused on long-term performance. The firm's strength and success have been built by applying a consistent, conservative investment approach since 1931. The cornerstone of the firm's equity approach is a regional strategy with a heavy representation in stocks of companies headquartered in the Upper Midwest. Mairs & Power manages mutual funds and individually managed portfolios. As of June 30, 2017 Mairs & Power's assets under management totaled $9.6 Billion. For further information go to www.mairsandpower.com.
Mairs & Power's Small Cap Fund Closes to New Investors
Announcement - August 15, 2016
After careful deliberation, Mairs & Power has decided to close the Small Cap Fund (MSCFX/ the "Fund") to new investors effective as of the close of business on September 30, 2016 (the "Closing Date"). The Fund will remain open to investment by existing shareholders, existing Mairs & Power private clients, retirement plans with an existing agreement and new or existing clients of an individual financial adviser representative with pre-existing investments in the Fund.
Mairs & Power Growth Fund (MPGFX) and Mairs & Power Balanced Fund (MAPOX) remain open to new investors.
"With our disciplined, low turnover and long-term investment approach, we hold relatively concentrated positions in a carefully selected portfolio of companies. This strategy means that we manage our asset base carefully," said Mark Henneman, Chief Investment Officer of Mairs & Power, Inc. (the "Adviser"). "We manage capacity for each of our Funds individually, taking a conservative approach that considers, among other factors, total assets under management, the rate of asset growth and the availability of securities that meet the Funds' investment objectives."
"We believe this decision is in the best long-term interest of the Small Cap Fund's existing shareholders, as it allows us to maintain stable and balanced growth with the Fund. We remain confident in our ability to continue to find attractive investment opportunities within the small cap universe and we remain committed to protecting the interests of our Fund's shareholders. This soft close demonstrates that commitment," said Andrew Adams, lead portfolio manager of the Mairs & Power Small Cap Fund.
Launched in 2011, the Small Cap Fund has experienced significant, but manageable, asset flows. The Fund's performance success over one-, three-, and five-year periods led to strong asset growth from both existing and new investors. While this growth has not impacted the Adviser's ability to implement the Fund's stated investment strategy, the decision to close the Fund at this time followed careful deliberation and discussion on how best to serve the interests of existing shareholders by managing asset growth.
Complete guidelines on eligibility to invest in the Fund are available in the Fund's prospectus.
About the Small Cap Fund
The Small Cap Fund seeks above-average, long-term appreciation by investing in smaller companies with attractive business niches and prospects for profitable growth. Like all Mairs & Power mutual funds, the Small Cap Fund focuses the majority of its investments on companies located in the Upper Midwest. Lead portfolio manager Andrew R. Adams and co-manager Allen D. Steinkopf bring a total of 43 years of professional investment management experience to their roles, including a combined 14 years at Mairs & Power.
About Mairs & Power
Established in 1931, Mairs & Power is an independent, employee-owned investment advisory firm with a commitment to pursuing long-term growth. The firm's mutual funds and individually managed accounts are built on the strength and success of carefully selected bonds and quality growth stocks. One of the cornerstones of the firm's equity approach is a regional strategy with heavy representation in stocks of companies headquartered in the Upper Midwest. As of June 30th, 2016, Mairs & Power had over $8.5 billion in assets under management.
If you have any questions or concerns, please refer to the Fund's Prospectus or contact Shareholder Services at 1-800-304-7404.
Mairs & Power has produced two white papers - Why Minnesota Works for Investors and Focused Investing for the Long-Term
January 2017 - Why Minnesota Works for Investors, this white paper describes what we at Mairs & Power have long known; Minnesota and the Upper Midwest present an opportunity-rich landscape for investors.
April 2016 - Focused Investing For The Long-Term, this white paper explores why a low-turnover, buy-and-hold strategy works for investors and in particular how, in the current, short-term focused market, such a strategy may deliver an advantage to long-term oriented investors.
Full Economic Cycle Charts
As a bottom-up fundamental investor, Mairs & Power looks for investments that have "a sustainable competitive advantage" which implies that portfolio holdings will outperform their peers over a long time horizon. When we talk about the advantages of holding through a "economic cycle," the only cycle that is relevant is the economic business cycle fluctuating between periods of expansion and slowing of demand across the economy as measured by Gross Domestic Product growth.
The below charts illustrate the performance of both the Mairs & Power Growth Fund and the Mairs & Power Balanced Fund over five full economic cycles as defined by the national Bureau of Economic Research, measured trough-to-trough, as well as the current period where we are mid-cycle. Each Fund's performance is compared to its relevant benchmark, and in the case of the Growth Fund, with its market index.
These charts illustrate the Growth Fund outperformed its peer as measured by the Lipper Multi-Cap Core Fund Index through every cycle. Both Funds also outperformed their benchmark index in all economic cycles except the 1982-1991 cycle.
The underperformance during the 1982-1991 business cycle coincided with a historic shift in the economy - the dramatic reduction in inflation which had held stock valuations down in the previous cycle. As investors' expectations for inflation came down, there was an across-the-board expansion of stock valuations across the market, resulting in the only period of underperformance to the benchmarks. Both the Growth Fund and Balanced Fund significantly outperformed their benchmarks during the subsequent two cycles.
Chart - Growth Fund Full Market Cycle
Chart - Balanced Fund Full Market Cycle
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the Funds may be lower or higher than the performance quoted. For the most recent month-end performance figures, click here or call Shareholder Services at (800) 304-7404.
Escheatment and Abandoned Property
Mairs & Power Mutual Fund Investor Education on Escheatment and Abandoned Property - June 2015
Escheatment is the process of turning over financial assets considered lost or abandoned property to a state authority. Abandoned property is property that is unclaimed by its rightful owner or his or her heirs. Unclaimed property refers to accounts in financial institutions and companies that have had no activity generated or contact with the owner for one year or longer. States define abandoned property as one of, or a combination of, accounts without activity initiated by the account owner; accounts with an address deemed as undeliverable by the USPS; or uncashed checks. Each state has its own rules concerning abandoned property. The time periods for abandoned property range from three to five years.
It is important to note that abandoned property rules prevents Mairs & Power from recording systematic purchases or redemptions as contact as well as automatic reinvestment of dividends and capital gains.
Please contact Shareholder Services at 800-304-7404 with any questions you have regarding this information. If you have any questions regarding the laws specific to your state of residence, you may visit the National Association of Unclaimed Property Administrators website at www.unclaimed.org for more information.
If you received a notice that your account(s) are subject to escheatment, please perform one of the following:
- Complete the Shareholder Signature(s) section in the notice mailed to you and return the entire letter in the envelope provided;
- Call our automated telephone line at 800-304-7404 and select options #3 and then #4;
- or access your account online at www.mairsandpower.com.